Microfinance progresses in Madagascar
New figures released by the National Microfinance Office have highlighted the good health of Madagascar's microfinance sector.They show that the penetration rate of the sector on the island went from 15.16 per cent in September 2009 to 17.4 per cent in September 2010, Xinhua news agency reports.
Furthermore, the total exposure for microfinance institutions was 167.5 billion ariary (€ 60 million) in September 2010 against 143.3 billion ariary 12 months earlier.
However, according to Afrique Hebdo newspaper, it is the total volume of credits distributed by the non-mutualist microfinance institutions that have progressed, as mutualist microfinance institutions have seen their exposure reduce.
This difference can be explained by the fact that financial institutions have drastically lowered the distribution of credit to mutualist institutions after the global financial crisis, while non-mutualist microfinance institutions kept on offering financial services accessible to all.